JAKARTA - The Composite Stock Price Index (JCI) is projected to continue weakening in today's trading, Monday 28 October. Phintraco Sekuritas in its research estimates the JCI will move in the resistance range of 7,850, pivot 7,750, and support 7,630.
Phintraco Sekuritas explained that Wall Street Indexes were closed in various ways on Friday, October 25. The Dow Jones Industrial Average and S&P 500 ended six weeks of strengthening rally, while the Nasdaq rally entered its seventh week. Nasdaq is supported by the anticipation of financial releases from major technology companies this week, including Amazon, Meta, Microsoft and Nvidia.
Wall Street is overshadowed by the relatively high 10 year bond yield condition of the United States (US) in 10 years (4.24 percent) last week. This condition was triggered by data on durable goods orders (0.4 percent mom) in September 2024 and Michigan Consumer Sentiment (70.5) in October 2024 which was higher than expected.
The data sparked market doubts over the aggressiveness of cutting the Fed's benchmark interest rate in the remainder of 2024, wrote Phintraco Sekuritas.
This week, continued Phintraco Sekuritas, the market is watching US labor indicators that have the potential to affect market views on the Fed's monetary policy direction in the remainder of 2024. In addition, the market will respond to the Chinese manufacturing index which is expected to return to above 50 in October 2024.
Domestically, Phintraco Sekuritas said, the focus of the market is still on the performance of the third quarter of 2024. Bank issuers (BMRI and BRIS) are scheduled to be released early in the week, followed by ASII and ADRO, then consumer related (ICBP and KLBF) ahead of the weekend.
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"In general, this week is expected to be the peak of the financial performance release period," explained Phintraco Sekuritas.
Phintraco Sekuritas predicts that the JCI is prone to further weakening today to the support range of 7,630-7,650. The support level is also adjacent to MA20.
"Therefore, the next movement will depend on the ability of the JCI today to stay above 7630 or not," said Phintraco Sekuritas.
Meanwhile, Phintraco Sekuritas recommends four shares for today, namely SMGR, INTP, EXCL, and TLKM.
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